On the economic front, weekly jobless claims unexpectedly declined 10,000 in the previous week to a seasonally adjusted 332,000, according to the Labor Department, marking the third-consecutive week of declines. Economists polled by Reuters expected first-time applications last week to climb to 350,000.

Also on the economic front, producer prices increased 0.7 percent in February, gaining by the most in five months as gasoline prices spiked, according to the Labor Department.

And current account deficit narrowed to $110.4 billion in the fourth quarter, according to the Commerce Department. Economists had expected the gap to widen to $112.8 billion from a previously reported $107.5 billion for the third quarter.

Stocks eked out a small gain in the previous session, with the Dow logging its first ninth-consecutive winning streak since November 1996 and the S&P 500 within striking distance of its all-time closing high.

President Barack Obama is expected to return to Capitol Hill for the second in a three-day set of meetings to try and reach a compromise with Republicans on how to trim the fiscal deficit. However, in an interview with ABC that aired on Wednesday, Obama warned that agreement could prove impossible. (CNBC Explains: Sequestration)

"Ultimately, it may be that the differences are just too wide," Obama said.

Men's Wearhouse surged after the men's clothing retailer hired Jefferies to evaluate strategic alternatives for its K&G division and authorized a new $200 million stock buyback program, which helped overshadow the firm's weaker-than-expected quarterly earnings.

Samsung is set to unveil its Galaxy S4 smartphone in New York City and analysts speculate that the new version will include an eye-scroll function and feature a bigger screen than the current Galaxy S3.

"Apple's status has been steadily undermined by the flawless execution Samsung has demonstrated in the more frequent iterations of its Galaxy smartphone offering," said David Garrity, principal at GVA Research. "Whether the Galaxy 4S will be the product generation that moves Samsung squarely ahead of Apple as innovation leader remains, but it clearly is a message that Samsung has been aggressively marketing."

Apple shares have continued to tumble in recent months, falling nearly 40 percent from its all-time high of $705 in September. And in the latest blow to the tech giant, research house IDC on Wednesday said shipments of tablets running the Android operating system is expected to top the iPad this year for the first time. Still, Apple edged higher Thursday after BTIG raised its rating on the iPhone maker to "buy" from "neutral."

Meanwhile, Google announced it will retire its Google Reader in July, citing declining usage. This follows Wednesday's news that Andy Rubin will step down as head of Google's Android division, and will be replaced by Sundar Pichai.

Amazon.com declined after JPMorgan downgraded the online retail giant to "neutral" from "overweight." Meanwhile, Ebay climbed after Evercore Partners upgraded the online auction site operator to "overweight" from "equal weight."

The Treasury will auction $13 billion 30-year notes on Thursday, with results available shortly after 1pm ET.

European shares traded at 4-1/2 year highs, as European Union heads of state headed to Brussels to discuss the region's austerity measures and rising youth unemployment.

"With the euro area economy having contracted in each of the past five quarters… and with countries' fiscal policy plans set to be reviewed, this summit provides an opportunity for policymakers to give permission to struggling countries to go a little easier on the austerity," wrote Emily Nicol, an economist at Daiwa Capital.